The vehicle scrappage legislation was passed by the U.S. House of Representatives by a 298-119 vote. President Obama has backed the plan and passage in the Senate is expected in the near future. Proponents claim that the so-called "Consumer Assistance to Recycle and Save Act (CARS)" may spur an estimated 625,000 vehicle sales. The program will last for one year.
"SEMA has consistently supported efforts to spur new car sales, but is disappointed that Congress ignored evidence that vehicle scrappage programs will not achieve claimed environmental benefits," said Chris Kersting, SEMA's President & CEO. "However, we are pleased that lawmakers agreed to spare from the crusher older cars and parts that help drive the restoration aftermarket and the passions of many in the automotive hobbyist community."
Under the program, consumers who agree to scrap a trade-in car that gets 18 miles per gallon or less (15 mpg or less for heavy pick-ups and vans) will receive a voucher to buy a qualifying new car. The voucher will range from $3,500 to $4,500 based on the new car's fuel efficiency. The program primarily targets SUVs and pickups since most passenger cars manufactured during the last 25 years get more than the 18 mpg combined city/highway requirement. Vehicle mpg ratings are listed at www.fueleconomy.gov.
The $4 billion program will begin when it is signed into law by the president. The car buyer will receive a $3,500 voucher if they buy a new passenger car that was rated at 4 mpg higher than the older vehicle, or a new pickup truck/SUV that was at least 2 mpg higher than the old truck. They will receive a $4,500 if the passenger car was at least 10 mpg higher and the truck/SUV was at least 5 mpg higher.
"SEMA continues to support initiatives that encourage the installation of specialty equipment to reduce emissions and increase fuel economy," said Kersting. "Looking to the future, SEMA will work with Congress to pursue more efficient and business-friendly environmental approaches."
SEMA, the Specialty Equipment Market Association founded in 1963, represents the $31.85 billion specialty automotive industry of 7,358 member-companies. It is the authoritative source for research, data, trends and market growth information for the specialty auto parts industry. The industry provides appearance, performance, comfort, convenience and technology products for passenger and recreational vehicles. For more information, contact SEMA at 1575 S. Valley Vista Dr., Diamond Bar, CA 91765, tel: 909/396-0289, or visit www.sema.org and www.enjoythedrive.com.
Consumer Assistance to Recycle and Save Act (CARS)
Consumers may trade in their older vehicles and receive vouchers worth up to $4,500 toward the purchase or qualified lease of a new, more fuel-efficient car or truck. The mpg values are EPA combined city/highway fuel economy as posted on the window sticker. MPG ratings are listed at www.fueleconomy.gov
Trade-in vehicles must:
SOURCE: Specialty Equipment Market Association